DALLAS (Diya TV) — AT&T has struck a $23 billion deal with EchoStar to buy 50 megahertz of nationwide spectrum, a move that could reshape the U.S. wireless market and boost the rollout of 5G and home internet services.
The agreement, announced Wednesday, is subject to regulatory approval. AT&T and EchoStar also expanded their wholesale network services deal, paving the way for EchoStar to operate as a hybrid mobile network operator under the Boost Mobile brand. AT&T will serve as EchoStar’s main network partner during the transition.
AT&T said the acquisition will allow it to expand its spectrum portfolio and deliver stronger 5G and broadband coverage. The company plans to use the new licenses to support its wireless and fiber networks, which remain central to its strategy in a highly competitive market.
“This acquisition bolsters and expands our spectrum portfolio while enhancing customers’ 5G wireless and home internet experience in even more markets,” said John Stankey, AT&T chairman and CEO. “We’re adding fuel to our winning strategy of investing in valuable wireless and broadband assets to become America’s best connectivity provider.”
The spectrum purchase also gives AT&T more capacity to handle surging demand for high-speed internet as consumers rely on mobile and home networks for work, entertainment, and communication.
For EchoStar, the deal helps ease pressure from regulators. The company is facing Federal Communications Commission scrutiny over whether it is meeting legal requirements to use its spectrum for 5G services. In May, the FCC launched a probe into the company’s deployment progress.
EchoStar described the hybrid operator agreement with AT&T as part of its “ongoing efforts to resolve the FCC’s inquiries.” The deal provides financial security while also addressing concerns that EchoStar might lose licenses if it failed to meet federal buildout rules.
“This deal puts our business on a solid financial footing, further supporting EchoStar’s long-term success and strengthening our ability to innovate and compete as a hybrid network operator,” said EchoStar CEO Hamid Akhavan.
The negotiations came after months of political involvement. In June, President Donald Trump and FCC Chairman Brandon Carr urged EchoStar and its Dish TV unit to resolve disputes over spectrum usage. Trump also met privately with EchoStar chairman Charlie Ergen before calling Carr to push for a settlement.
The agreement with AT&T is expected to resolve many of those regulatory concerns. Until the deal closes, which could be by mid-2026, AT&T may lease spectrum from EchoStar to strengthen its service footprint.
Investors welcomed the announcement. EchoStar shares surged more than 40% in early trading, while AT&T stock rose about 1.5%. The strong response reflected optimism that both companies are positioning themselves for growth in an increasingly competitive wireless landscape.
The deal does not affect EchoStar’s other businesses, including Dish TV, Sling, and Hughes. The company also noted it continues to review strategic options for its remaining spectrum portfolio.
The AT&T–EchoStar agreement underscores the broader race among U.S. telecom giants to secure spectrum needed for next-generation connectivity. Verizon and T-Mobile have already spent billions to gain access to the spectrum that powers faster and more reliable 5G service.
For AT&T, this acquisition represents another step in expanding its coverage and speeds. The company says it remains the only provider offering both wireless and fiber internet nationwide, with a growing number of customers choosing bundled services.
As the wireless market heats up, analysts expect spectrum deals to remain central to how carriers compete for customers. By strengthening its portfolio, AT&T hopes to gain an edge in delivering high-speed internet to homes and businesses while staying ahead in the 5G race.
